The latest deal builds upon the South Korean firm’s strategic collaboration with PureCycle.to build Asia’s first plastic purification plant in Ulsan
Mike Otworth, CEO of PureCycle Technologies (left) posed for a photo with Na Kyung-soo, CEO of SK Geo Centric (right) at PureCycle Technologies’ facility in the US. (Credit: SK innovation Co., Ltd)
South Korean chemical firm SK Geo Centric has made an investment worth $55m in US-based waste plastic recycling PureCycle Technologies to expand the plastic recycling business.
With the investment, SK Geo Centric has become a strategic partner in PureCycle Technologies with an undisclosed stake.
The latest deal builds upon the South Korean firm’s strategic collaboration with PureCycle.
In January this year, the two firms signed a nonbinding agreement to establish Asia’s first plastic purification plant by 2024 in Ulsan, with a capacity of 60,000 tonnes per annum.
PureCycle has developed a chemical recycling technology that leverages a solvent to remove contaminants, odours, and colours from waste plastics to extract ultra-pure recycled polypropylene (UPR PP). The material is used for consumer products, food packaging, and automotive interiors.
With the new facility, SK Geo Centric will have exclusive rights to sell UPR PP in Korea. The firms are also planning to expand their business to China and the Southeast Asian region.
The US-based firm is constructing a line in Ohio with an annual production capacity of 50,000 tonnes and plans to establish a plant in Georgia that will have a production capacity of 300,000 tonnes per annum.
PureCycle CEO Mike Otworth said: “SK Geo Centric’s investment in PureCycle underscores their vote of confidence in our purification technology.
“They have been a valuable partner, working alongside our team to advance discussions to open the first PureCycle plant in Asia.
“We are proud to include them in our investor group and their investment marks an integral step for our company and highlights a key partner’s trust in our ability to execute.”
SK Geo Centric CEO Na Kyung-soo said: “We will secure three key differentiated technologies for chemical advanced recycling, including pyrolysis and depolymerisation technologies, and accelerate the establishment of the circular economy for plastics through creating a recycle cluster in Ulsan.”